When to Buy Gold: A Guide to Investing in Precious Metals

If you're considering investing in gold, timing is everything. Historically, gold has performed well during times of economic uncertainty.

Investors often turn to gold during periods of inflation. This is because gold retains its value even when the purchasing power of other currencies is eroded by inflation.

Gold is a highly valued and sought-after precious metal, often used as a store of value and a hedge against inflation.

Gold has a unique combination of properties that make it highly prized, including its rarity, durability, and ability to be easily melted and molded.

It's estimated that all the gold ever mined could fit into a cube just 21 meters on each side. This scarcity contributes to gold's value and allure.

Gold is also an excellent conductor of electricity, which is why it's used in electronics and other applications.

The price of gold is influenced by supply and demand, with central banks and investors playing a significant role in shaping the market.

Central banks hold large gold reserves, which can impact the market price.

Investing in gold can be a great way to diversify your portfolio and protect your wealth. There are three ways to invest in gold: buying physical gold bullion, investing in gold-exchange traded funds (ETFs), or buying gold-related stocks.

Buying physical gold bullion can be a unique experience, but it comes with high fees and a security risk. You'll be responsible for storing and insuring your gold, which can be a hassle.

A better alternative is to invest in a gold ETF, like SPDR Gold Shares (GLD) or the iShares Gold Trust (IAU). These funds have achieved respectable results over the last five years compared to the S&P 500.

The value of gold is based on supply and demand, but it's different from other commodities because most of it is purchased and held rather than used.

If you do decide to invest in physical gold, consider the following reasons: the price of gold has increased by 372% in Canadian dollars from 2005 to 2022, gold has historically protected portfolios during uncertainty, and annual gold mining production has declined in recent decades.

Here are some key differences between SPDR Gold Shares and the iShares Gold Trust:

Gold is often negatively correlated with other assets, making it an attractive portfolio diversification option.

Before you buy gold, it's essential to understand the current gold rate in your location, as it varies per city due to demand, import costs, and other variables.

The day's gold rate depends on the cost of transportation, octroi charges, taxes, and other fees associated with its acquisition. Every city's gold price changes daily.

Labor costs in jewelry production also impact gold pricing for each product, so it's crucial to compare gold prices before investing.

In Canada, you can buy gold bullion from various sources, including small independent dealers, the Canadian Mint, and large institutional dealers like major Canadian banks.

Selecting a reputable dealer is crucial, and we recommend choosing one registered with the Royal Canadian Mint as a BULLION DNA Dealer.

These dealers have access to anti-counterfeiting technology offered through the Canadian Mint.

TD Canada Trust is a proud member of this bullion dealer program.

If you prefer to buy from a major Canadian bank, TD Canada Trust is a great option, with over 1000 branches across Canada.

Buying from a bank offers several benefits, including peace of mind knowing you're dealing with a regulated and respected financial institution.

You can also avoid verifying the authenticity of physical gold held by small 3rd party dealers when you buy from a bank.

Here are some benefits of buying gold bullion from TD Canada Trust:

Buying coins can be a great way to invest in gold, but it's essential to consider the pros and cons.

The 24k gold coin is a solid investment option, consisting of 99.99% pure gold, which gives it a higher primary value than 22k gold coins.

However, 24k gold coins are prone to scratches and are less resilient than 22k gold coins, which contain 91.67% gold.

It's worth noting that the higher gold content in 24k coins makes them more valuable, but also more delicate.

The gold price in your city is not a fixed rate, but rather it varies daily due to demand, import costs, and other factors. This means the price can fluctuate significantly.

The cost of transportation, octroi charges, taxes, and other fees associated with acquiring gold in your city affect the day's gold rate. These costs can add up quickly.

To get the best deal, it's essential to compare gold prices in your city. This will help you make an informed decision when investing in gold.

The labor cost in jewelry production also varies among cities, impacting gold pricing for each product. This is something to consider when buying gold.

Before making a purchase, it's crucial to understand the current gold rate in your location. This will ensure you're getting a fair deal.

Gold prices have been rising, with the GLD ETF near its record high and well above its 50-day line. This trend is also reflected in the S&P Gold Shares ETF, which has an 85 out of 99 Relative Strength Rating.

The S&P Gold Shares ETF can be used to generate income through options trading, such as covered-call options. This is a key consideration for income investors, as gold itself does not pay dividends.

Gold has finally broken through to a new all-time high, reaching $2,255 an ounce. This is a significant milestone, considering it first broke above $1,800 an ounce in 2011.

The spot price of gold is the current price of one troy ounce of gold for immediate delivery. A troy ounce equals roughly 31.1035 grams.

You can find the spot price of gold on the Gold Price in Canada page, which offers insights into how the price has trended in the short and long-term.

The spot price is a crucial metric for investors and traders who want to know the current value of gold.

Gold has been rising, taking gold stocks and ETFs with it. The GLD ETF is near its record high and remains well above its 50-day line.

The GLD ETF aims to match the performance of the price of gold bullion, as quoted in London. This makes it a stable investment option compared to gold mining stocks, which can be volatile.

The S&P Gold Shares ETF holds an 85 out of a best-possible 99 Relative Strength Rating. This means it's a strong performer in the market.

Gold can be used to generate income through options, such as covered-call options. This can be a good option for investors who want to earn income without dividend payments.

The price of gold has broken through to a new all-time high, reaching $2,255 an ounce. This is a significant milestone, especially considering it first broke above $1,800 an ounce in 2011.

Gold's run-up is partly due to a rising tide lifting all ships, with asset values increasing across the board. This includes the S&P 500 being around an all-time high and the cryptocurrency market rebounding.